On April 28th, the Hong Kong stock market witnessed a much-anticipated new stock issuance: A new force in China's freshly brewed beverage industry — AUNTEA JENNY (02589.HK) officially started its IPO subscription. In this issuance, Tiger Brokers, as the only technology securities firm among the underwriters of the prospectus, supports 0 handling fee for cash subscription + 0 interest for margin subscription, and provides a margin financing leverage of up to 10 times, which greatly reduces the participation threshold for investors.

Company Introduction: A Rapidly Rising Leader in the Freshly Brewed Tea Industry

AUNTEA JENNY was established in 2013, focusing on the product line of "fresh fruit tea + fresh milk tea" and positioning itself in the mass consumption market. According to the data in the prospectus, as of 2024, the company has operated 9,176 stores in China, becoming the fourth largest freshly brewed tea brand in China. Its brand penetration and the scale of its outlets are both at the forefront of the industry.

It is worth noting that AUNTEA JENNY adopts a light asset expansion model of "franchising as the mainstay and self-operating as a supplement", enabling it to achieve large-scale replication and a rapid increase in market share in a short period of time.

Revenue Situation: Steady Growth and Strong Profitability

The prospectus reveals that AUNTEA JENNY achieved an annual GMV (total transaction volume) of more than 10.7 billion yuan in 2023, with a significant year-on-year growth. On the profit side, through economies of scale, supply chain optimization, and brand premium, the company has successfully maintained a high gross profit margin level, demonstrating strong profitability.

Currently, AUNTEA JENNY's financial data is in a relatively excellent range among its peers. In particular, the rapid growth of its franchising business has further pushed up the net profit margin.

Valuation Level: Slightly Above Reasonable, Market Confidence is Promising

The IPO pricing range of AUNTEA JENNY is expected to correspond to a market value of HK$10.02 billion to HK$11.86 billion. Calculated based on its 2023 performance, the corresponding price-to-earnings ratio (P/E) is estimated to be around 20-24 times, which is at a slightly above reasonable level in the freshly brewed tea industry. Considering its brand expansion potential and the increase in market share, it is reasonable to give a moderate premium.

It is worth mentioning that currently, the Hong Kong stock market generally has a high acceptance of new stocks in the catering and consumption category. Coupled with the brand recognition of AUNTEA JENNY, it is expected to receive a positive response from investors.

Analysis of Core Advantages

• High Brand Recognition: As a well-known tea brand among the public, AUNTEA JENNY has a strong brand appeal.

• Rapid Expansion of the Franchising Model: Low capital investment and high-efficiency expansion accelerate the national layout.

• Obvious Advantages of Self-Built Supply Chain: Deeply lay out the raw material supply chain system to improve the operating gross profit margin.

• Strong Category Innovation Ability: Continuously launch new products that meet the tastes of the young consumer group, enhancing user stickiness.

Is It Worth Subscribing for New Shares?

Overall, AUNTEA JENNY has a stable growth expectation, a clear business model, and strong profitability. Moreover, the subscription threshold this time is as low as HK$3,427.83, which is very attractive to small investors. In addition, with the preferential policies of 0 interest for margin financing and a 10 times leverage, the subscription cost is further reduced.

Of course, it should be noted that the current tea industry is highly competitive, and there is a certain degree of uncertainty in the trend of consumption upgrading. Whether AUNTEA JENNY can continue to lead in the future still requires attention to brand maintenance and product innovation capabilities.

Overall Suggestion: It is suitable for investors with a moderate or higher risk appetite to actively participate in subscribing for new shares. Holding for the medium and long term can also be considered, but attention should be paid to diversifying investments and setting profit-taking strategies.

Tip

• Subscription Deadline: 8:00 on May 2, 2025 (estimated)

• Dark Pool Trading Time: 16:15-18:30 on May 7, 2025 (estimated)

• Listing Time: May 8, 2025 (estimated)